Trichet’s in trouble

Jean-Claude Juncker, Luxembourg’s prime minister, chairs meetings of the eurozone finance ministers, the Eurogroup. Kite-flying is not usually the job of a chairman, so it was strange to see Juncker putting his name to an article in the Financial Times on Monday (6 December), jointly signed with Giulio Tremonti, Italy’s finance minister, calling for eurozone countries to issue European bonds.

It is a contentious idea and will not have been universally welcomed by eurozone finance ministers, who met that same day. The German government swiftly pooh-poohed the idea, pointing out that it would require significant treaty changes.

Already assured of Angela Merkel’s displeasure, Juncker then received the kiss of death: approval from Helmut Schmidt, German chancellor from 1974-82. He said that Merkel and Wolfgang Schäuble, Germany’s finance minister, had had to learn on the job about financial markets. He singled out Juncker as “one exception” of a leader who understood the modern economy. The man is doomed.